June 21 (Reuters) - The U.S. Justice Department is

considering allowing planemaker Boeing ( BA ) to escape criminal

prosecution for violating the terms of a 2021 settlement related

to two fatal 737 MAX crashes in 2018 and 2019, the New York

Times reported on Friday.

The department has not made final decisions or ruled out

bringing charges, or some other solution, the New York Times

said, citing people familiar with the situation. The DOJ is

considering offering Boeing ( BA ) a deferred prosecution agreement

(DPA), which might require the company to install a federal

monitor to oversee safety improvements.

Boeing ( BA ) was not immediately available for comment, and a

spokesperson for the DOJ declined to comment. Reuters could not

independently verify the report.

Boeing ( BA ) shares were flat in afternoon trade.

In May, the Justice Department said

Boeing ( BA ) had violated a 2021 agreement

with prosecutors that shielded it from criminal prosecution

over the fatal crashes. The 2021 DPA required the U.S.

planemaker to overhaul its compliance practices. Boeing ( BA ) has said

it complied with the agreement.

At that time, the DOJ said Boeing ( BA ) failed to "design,

implement, and enforce a compliance and ethics program" to

prevent violations of U.S. fraud laws. Boeing ( BA ) in January 2021

reached an agreement with the DOJ to pay $2.5 billion to resolve

a criminal investigation into the company's conduct surrounding

the fatal crashes.

Boeing ( BA ) previously paid $2.5 billion as part of that deal, in

which prosecutors agreed not to prosecute the company over a

fraud conspiracy charge related to the 737 MAX's flawed design.

If the DOJ chooses, prosecutors could charge the company

criminally, a move that could affect Boeing's ( BA ) ability to secure

government contracts, according to a Reuters review of

prosecutors' actions following findings that companies violated

other similar agreements.

Any DOJ move to not prosecute Boeing ( BA ) would bring some relief

to the beleaguered planemaker, which has been engulfed in a

crisis since the blowout of a door plug on a 737 MAX 9 jet on

Jan. 5, in which several passengers suffered injuries. Boeing ( BA )

shares have slumped over 30% this year.

Relatives of the victims of the two fatal 737 MAX crashes

have long criticized Boeing's ( BA ) deal with prosecutors, contending

that Justice Department officials failed to hold the company

accountable. This week, they pressed prosecutors to seek a fine

against the planemaker of nearly $25 billion and move forward

with a criminal prosecution.

(Reporting by Abhijith Ganapavaram in Bengaluru and Chris

Prentice in New York; Editing by Anil D'Silva and Leslie Adler)